FRANCHISING

Total Outlets90

Franchise opportunity available for South East Asia and Australia. Invest in a successful food and beverage brand. We believe in keeping it simple - Comfort Food that is served efficiently. As rental prices continue to inflate, we are re-branding our business model into compact kiosks to improve your profit and success.

SB Supplies & Logistics Sdn Bhd (SBSL) is a subsidiary of Borneo Oil Berhad, which represents the franchising division of the Group. It functions as the management company or SBSL has been appointed as the franchisor to manage the entire F&B franchising for the group, both locally and internationally.

SBSL is entrusted with the role of keeping and protecting the value of SugarBun's brand image and identity. The company further plays custodian and service provider to all franchisees in terms of business consultation and adherence to day-to-day franchise business compliances.

+SECTION 1 : SB QUICK SR

SugarBun offers both variety and value, besides the traditional QSR features of quality, service and cleanliness. Its hero product is Broasted Chicken; famous for being juicer, tender and less oily-unlike the typical “fried chicken”. Other distinctive and unique products (relative to other popular fast foods) include Savoury RiceTM, Hot Saucy Kano, Fish and Chips, and Fresh Pickled Vegetables. Other products it offers include Chicken Burger, Beef Burger, Fish Burger, Hot and Spicy Chicken, Mash Potato, French Fries and Coleslaw.

Sambal Eco-Fish meal is prepared using the red Tilapia Fish from Batang Ai in the Sri Aman Division of Sarawak which was bred in unpolluted water. These fresh water fish from Batang Ai was fed with natural and nutritionally-balanced diet of grain and protein with no chemicals and antibiotics. The authentic Sambal Eco-Fish meal is guarantee of no fishy or muddy smell. It is served with sambal fish and cili padi with fish sauce, fresh pickles and steamed fragrant white rice.

SugarBun R & D Department is on the continuos look out to responds to customers consciousness of nutrition and health. Sambal Eco-Fish meal is one of the products innovated to meet the ever-changing demand of our customers.

Other complimentary products are variety of Pasta and Pizza and Cafe Bar Beverages.

Through its aggressive marketing and promotions campaign, SugarBun experienced its greatest increase in sales and market share.

In the midst of aggressive expansion plans, SugarBun has not forgotten its corporate responsibility towards the community and the environment. It has been involved in various community projects, including setting-up collection boxes for various funds and charitable organisations.

+SECTION 2 : FRANCHISING BUSINESS

SBSL has so far established 81 franchisees restaurants successfully in Malaysia, 8 in Brunei Darussalam, 1 in Bangladesh, 1 in Melbourne, Australia and 1 in West Kalimantan Indonesia.

Offering mouth watering Asian Cuisine delicacies, Pasta & Pizza, Cafe Bar Beverages and Western Meal catering to a great variety of taste which has been instrumental in ensuring unique differentiation for the brand. Our strength lies in its potential to cater to all ages, cultures and professions.

The main future concentration of franchising will be in building more of these concepts stores, which has been proven to outdo other QSR chains in the vicinity. This will ensure competitiveness against other QSR chains should they be located nearby.

STRATEGIC DEVELOPMENT & ACHIEVEMENT

Quick learners were the people behind SugarBun. In the mid-80's recession, they encountered a bitter experience when two supermarkets chains collapsed affecting their restaurants in Sibu and Kuching. In Sibu, they were forced to relocate or buy up the four shop houses pegged at RM3 million. They decided to relocate - a move which turned profitable in later years. The other restaurants, unfortunately (set up within a supermarket), had to be closed at a substantial loss. Nevertheless, over the years SugarBun has achieved many "first". They were the:-

First Malaysian fast food chain to incorporate a Junior Library into major restaurants, thus providing "edutainment" and additional service to the community.

Only fast food chain in Malaysia to have a 100% local work force, a plus point for SugarBun as they face less cultural and language problems in the frontlines with customers.

Other key factors that led to their successful listing are:-

Strong R&D support in their continuous programme to sustain sales and margins.

Competitive, affordable and value-for-money pricing.

Positive financial growth over the years.

Strong management team.

Participation, contribution and dedication from shareholders.

Tremendous growth opportunities in the SugarBun franchise system

The listing has brought on many benefits for SugarBun. Among them are open doors for upstream and downstream synergistic activities, mergers and acquisitions. Then, there is the ability to tap into the capital market for cheaper funds which will assist in the growth of SugarBun.

A better image has surfaced as well which has provided for better locations, recruitment of better manpower and better sales because of a higher awareness level.

(Malaysian Enterprise Journal '98 extract)

+SECTION 3 : WINNING OPPORTUNITY

Why SugarBun Franchise is for you?

As a SugarBun franchise owner, you’ll have the best of two worlds - a proven system plus the security that only franchising offers. The US Department of Commerce and International Franchise Association stated that since 1979, less than 5 percent of franchised stores fail. This is remarkable given the five-year failure rate for independent small businesses is over 80 percent.

Our R&D team leads SugarBun’s on-going development of new products to keep our restaurants ahead of everyone else in the industry.

TRAINING BEYOND THE BASICS

Our training programme is geared to help you excel in both your operational and management skills. We provide an extensive hands-on training programme in all areas of store ownership and management.

MARKETING

A variety of media is used to advertise the business. Radi, buses, television, billboards, newspaper and many other formats have been employed. However, we continue to recognize the best advertisement is word of mouth. The most successful franchisees devote time every day to promote their restaurant through local community efforts and positive customer relations.

SAVE ON SUPPLIES

You can enjoy cost savings on supplies and equipment because of mass buying power of the franchise system.

SITE-LOCATION & DEVELOPMENT ASSISTANCE

SugarBun’s real estate support will help provide you with expert guidance in these decision processes. Our goal is to ensure that your restaurant opens on time and with minimum problems. Ensure all products meet the Halal requirement.

+SECTION 4 : CHOOSING THE RIGHT LOCATION

Choosing The Right Location For Your SugarBun Franchise

How SugarBun Real Estate Supports You:

Step One: Market Availability

At SugarBun, we help you to confirm the geographical preference as to the specific market where you would like to operate your restaurant(s). We will confirm if the market is available for development or we shall suggest other areas open for development.

A prime consideration will be your personal growth intentions as you look to build several restaurants in a market where you can dominate. All territories and terms of development, however, are awarded at the sole discretion of SugarBun.

Step Two: Sign the Preliminary Agreement

Once you have selected your market, you’ll enter a Preliminary Agreement with SugarBun for that market. At that time, the next step will be to determine the trading area.

Step Three: Trading Area

SugarBun can help you focus on the right trading area(s) to build your restaurant.

Step Four: Site Selection

Selecting a good trading area is extremely important; even more important is the decision on the specific site location within the trading area.

Step Five: Location Acceptance Request [LAR]

Once you have made a final site decision, you’ll be asked to complete a formal Location Acceptance Request [LAR]. This form is forwarded to SugarBun GM (Franchise Development) for review and written acceptance.

At this point, SugarBun’s Project Department enters the picture to help you determine the exact restaurant design to be erected on the site.

+SECTION 5 : SITE SELECTION & ARCHITECTURE PLANNING

Site Selection & Architecture Planning Designed For Efficiency

How SugarBun’s Construction Experts Support You?

We provide you Construction Planning support in such areas with as:-

Feasibility Study

At SugarBun, we provide you with a detailed questionnaire to help conduct your feasibility study, as well as other studies that may be required.

Preliminary Site Study

At SugarBun, our construction specialist will also work with you to suggest the size of the restaurant as well as seating capacity.

Site Visit

At SugarBun,we bring you for a site visit to familiarise you to identify specific issues with the site and suggest steps to facilitate the construction process.

Final Site Plan

At SugarBun, we will help you define the project scope and provide a recommended bid package that will go to the general contractor.

+SECTION 6 : MARKETING SUPPORT

Marketing Support To Build Your Business

How Marketing Supports You?

Long-range Strategic Planning

At SugarBun, we provide market research and input on new products development and testing. We strive to continuously improve on customer communications, product quality and customer service. We also continuously offer products which suit the taste of specific customer segments.

Advertising

At SugarBun, we strive to deliver cost effective ways to generate brand awareness. Some of the media we used in the past include TV, Radio and Print Advertising, leaflets, and painted buses.

For the store itself, effective communication is achieved through attractive signages, menu and menu boards, posters and packaging. We have our own Creative Department to generate effective and creative advertising, as well as providing “below-the-line” support for Local Store Marketing (LSM) efforts initiated by individual stores, e.g. banners, posters, coupons.

Promotions

For the opening of new restaurants, Corporate Marketing provides assistance in creating a launch plan tailored to suit the particular market situation. Corporate-wide promotions are conceptualised for implementation on a regular basis throughout the year to provide customers with added-value, and to increase trial or repeat customers.

Promotional support materials for the store, e.g. banners, posters, danglers, premiums, are charged to the Franchise, with minimal mark-up to cover administrative expenses.

On-going Support

The Marketing Team is readily accessible to the Franchisee for consultation and advice on how to plan and implement effective Local Store Marketing activities.

+SECTION 7 : FAQ

ANSWERS TO IMPORTANT QUESTIONS ABOUT OUR FRANCHISE OPPORTUNITY

Q1 What is the minimum Equity / Capitalization ratio?

The normal ration is 50%. This means the franchisee needs to come up with his own capital equivalent to 50% of the total investment needed. The other 50% can be from borrowings from the normal sources.

Q2 Do you have an F&B supply house?

In many states of Malaysia, we have F&B supply house except for supply of certain controlled items and proprietary products.

Q3 What is the duration of the Franchise?

A Franchise Agreement is issued on each unit for 15 years, with an option to renew for another 5 years. A renewal fee of 2.5 percent of the average annual gross sales of the 14th and 15th year of the franchise will be required to help cover our legal costs, and other costs.

Q4 Will SugarBun provide site and construct the building for me?

Each Franchisee responsible for securing his or her own land and building. All potential sites must be submitted to SugarBun for written acceptance. You may choose or purchase or lease the land and construct the building. Or you may secure a lease in which the landlord construct the building for you to our specification.

Q5 How much is the initial franchise fee?

The Franchise Fee for a single unit is RM60,000.00. For multi-unit franchisees, the initial franchisee fee will be decided by the Franchisor and the same goes for area development franchise.

Q6 Is there any fees involve?

Yes, there will be an Initial Advertising Fee of RM15,000.00 for Pre and Post Opening activities. Monthly recurring fees to be paid to the franchisor:

(i) Royalty Fee of 4% of Monthly Net Sales (excludes 6% GST).

(ii) Advertising Fee of 3% of Monthly Net Sales (excludes 6% GST).

Q7 Is the Franchisee required to purchase all his equipment and supply needs from SugarBun?

SugarBun has approved equipment suppliers which are based on their ability to offer competitive pricing, service and support for our corporate-owned locations and franchisees. The Franchisees, may, of course, choose to purchase equipment from other approved sources. Quality specifications on equipment are provided to allow the Franchisee to purchase goods meeting these standards and specifications in the open market.

Q8 How much money can I expect to make from a SugarBun Franchise?

Many factors must be considered in determining potential earnings and profits. No warranty is implied in any projections or estimates when given by any SugarBun personnel. Prospective franchisees are advised to do their owkn study and evaluations before maling any commitment.

Q9 Is expensive in the food or restaurant industry required to become SugarBun franchise?

No. Although a food service background is always helpful; however, if you're inexperienced SugarBun has complete training programme for Franchise and management personnel. We also povide proven, successful operating procedures for you to follow.

Q10 What type of training do I receive?

Because of our commitment to your success, SugarBun has designed a thorough franchise training programme. This programme consist of both classroom training at our Corporate Training Center and on-the-job training at one corporate owned restaurant. We also provide on-location opening assistance at the restaurant. These training and assistance are included in your initial franchise fee. However, you are responsible for any expenses incurred for transportation, food, lodging and employee salary, if applicable.

Q11 How many people can I send and for how long?

SugarBun requires the Franchisee or the managing principal (in the case where the Franchisee is a corporation) and 2 designated managers and 2 supervisors ( who must pass Franchisor selection citeria) to attend and complete the training programme for a minimum of 3 months and maximum period of 6 months.

Q12 Some companies place limits on the number of franchisees each can open What's the SugarBun policy?

Normal approach would be thropugh the establishing of single unit restaurant. But SugarBun encourages the ownership of multiple unit concept through which territoral rights are granted. Upon successful development of the single unit franchise, Franchisee can apply for area development franchise.

Q13 Will SugarBun franchise to corporation?

Yes. SugarBun will franchise to corporation and individuals as well. Franchise principals must own at least 75% and personal guarantees will be required.

Q14 When should I sign the Preliminary Agreement?

When you have decide that a SugarBun franchise is the right business venture to go in, the commitment entails an initials payment of RM10,000.00 (Non-Refundable) upon signing of the Letter of offer and balance of RM50,000.00, upon signing of the Franchise Agreement respectively. The franchise agreement is normally signed one month before the restaurant opens for business.

+SECTION 8 : OPERATION SUPPORT FOR EXCELLENT QSCV

Operation Support For Excellent QSCV

How SugarBun’s Operations Support You?

At SugarBun, we believe in delivering excellent quality, service, cleanliness and value through our proven systems, procedures and techniques, and to periodically evaluate the franchise units to ensure that levels of excellence are maintained. We will guide you through all these to jointly achieve only “Excellence”

OPENING STAGE

Pre-Opening: To give a franchisee the first insight and familiarisation of SugarBun’s Operations, we shall train 4 personnel from the franchisee (2 Managers & 2 Supervisors). This training will give you the confidence and familiarity to carry out your responsibilities. However, we are flexible on the number of personnel trainned based on the size of the restaurant(s).

Post-Opening: SugarBun is committed to ensuring everything runs smoothly for the franchisee during the initial stage. Thus, a SugarBun representative will remain in the restaurant during the first week of business assisting the management team in daily operations.

FOLLOW-UP STAGE

Continuous Support: Our support for franchisee does not end after the post opening. We believe in building continuous good rapport with our franchisee. Regular restaurant visits will be scheduled to review procedures, cleanliness, service, product quality and attitude of management and staff.

Continuous Training: We believe nothing guarantee success more than through training. We also believe that the most effective training combines actual on-the-job work experience with classroom instruction in all aspects of managing and controlling the business. Each SugarBun franchisee will continuously undergo training at our Training Academy or our Training Executives will schedule in-restaurant sessions to train management team or staff.

OTHER OPERATIONS SUPPORT

Purchasing Effectiveness: Although Purchasing is managed through a separate area of responsibility, it still works “hand in glove” with SugarBun’s Operations and Marketing Departments to maintain low pricing on food, supplies and distribution services.

As a member of an established international network, you’ll be able to realise cost savings that are a direct result of the mass buying power of the franchise systems. Your Corporate Buyer will work closely with you regarding your unique circumstances.

+SECTION 9 : EXCELLENT SERVICE & MANAGEMENT TRAINING PROGRAMMES

Training Programmes To Support You

“For Excellent Service & Management”

How Training Supports You?

Training Programmes

At SugarBun, we believe in delivering quality, service, cleanliness and value. We help you understand every aspect of the business: from day to day operations and accounting, to inventory and managing your staff. We offer you business, including continuing support programmes that update you on new techniques and equipment. We’ve heard our training is tiring and stressful, but we’ve also heard that those who have attended our training benefited more than just an ordinary asset. Our Training Academy and our Corporate Trainers are well equipped and prepared to train and test you to ensure that you understand the business and its operation better.

Training for Franchisee Principal

We will conduct 2 weeks comprehensive training for the Franchise Pricipal on the basic restaurant operations and management. The training will cover thru the basics of product preparations and how a shift should be managed systematically. The Franchise Principal will understand the insight of how a franchisee is supported by our commited team from the corporate office from the basics of setting up, Training, Operational Auditing and technical support.

Management Training

The franchisee management team which will be running the restaurant will undergo the Management Training for a period of three to six months. The franchisee management team will be trained on the daily aspect of restaurant operations and administration. Our goal is to ensure that the management team emerge from the training with sufficient knowledge, skill and experience to manage and run a SugarBun Restaurant in accordance with standard practices.